CONMED Corporation

What they do

CONMED designs and sells devices and equipment used by surgeons and healthcare professionals in orthopedics, general surgery, gynecology, and thoracic surgery. Its product lines are orthopedic surgery and general surgery, including sports medicine instrumentation, powered surgical instruments, imaging systems, endo-mechanical instruments for laparoscopic procedures, insufflation, smoke evacuation devices, electrosurgical generators, and cardiac monitoring products.

Revenue drivers

• Orthopedic Surgery — Includes sports medicine and lower extremities instrumentation and implants, powered surgical instruments, and imaging systems; also includes service fees related to promoting sports medicine allograft tissue.
• General Surgery — Includes endo-mechanical instrumentation for minimally invasive laparoscopic procedures, clinical insufflation, smoke evacuation devices, cardiac monitoring products, and electrosurgical generators and related instruments.
• AirSeal — A key growth platform; the AirSeal Robotic Solution is now indicated for use with Intuitive's 8 mm hex cannulas on the da Vinci 5 platform.
• Buffalo Filter and BioBrace — Mentioned as key growth platforms; Buffalo Filter is a smoke evacuation device line, and BioBrace is a sports medicine product.

Recent performance

In Q2 2026 (three months ended June 30, 2026), sales were $343.5 million, up 0.3% year-over-year as reported, but down 0.5% on a constant currency basis. Excluding strategic exits of gastroenterology (GI) product offerings, organic constant currency net sales increased 6.0%. GAAP diluted EPS was $0.77, up 11.6%, and adjusted diluted EPS was $1.38, up 20.0%, both including a $0.21 benefit from IEEPA tariff refunds. For the full year 2025, revenue was $1.37 billion and net income was $47.1 million, with diluted EPS of $1.51.

Strategy

Management is executing a portfolio optimization strategy, completing strategic exits of its gastroenterology product offerings. The company is also advancing key growth platforms including AirSeal, Buffalo Filter, and BioBrace. In the quarter, CONMED refinanced a portion of its debt and strengthened leadership with appointments of Celine Martin and Jeff Mirviss to the Board and John E. Gallagher as CFO. The company continues to focus on organic constant currency growth and disciplined execution to position for long-term growth and value creation.

Risks

• Economic downturn impact on capital sales — Approximately 14% of 2025 revenues came from capital products, which may be deferred if hospitals and healthcare providers face financing constraints.
• Dependence on EtO sterilization — About 31% of 2025 products are sterilized by third-party sterilizers using ethylene oxide; limitations on EtO availability could restrict sales of sterile products.
• Supply chain and cost pressures — The company faces risks from supply chain challenges, inflation, and increased interest rates, which could adversely affect financial results.
• Cybersecurity and IT system risks — A failure or breach of enterprise-wide software or information technology systems could disrupt operations or compromise intellectual property.

Outlook

For the full year 2026, management updated guidance to GAAP net sales of $1,358 million to $1,373 million, representing a decline of 1.2% to 0.1% as reported, but organic constant currency growth of 5.0% to 6.0%. Adjusted diluted EPS is expected to be $4.48 to $4.60, down 2.4% to up 0.2% year-over-year. The guidance reflects the second quarter performance and an updated outlook for the second half of 2026, including the impact of GI product exits and foreign currency.